Amid a boom in international demand, the export commission on the various types of rice has been raised and will take effect from today until the end of the current crop when it will be reviewed, Agriculture Minister Robert Persaud said yesterday.
Speaking at a media briefing at the Ministry of Agriculture’s boardroom, Persaud said that the adjustments will take effect for all contracts and export arrangements to be undertaken from today and last until the end of the current crop, when it will be reviewed. He noted that the export commission on rice was originally set at 2% but that was changed. He said that the current adjustment is still below what is provided for in law.
As of today, bulk cargo rice being exported will attract an export commission of US$10 per tonne as opposed to the US$6 charged previously while the export commission on bulk polished white rice has moved from US$6 to US$9 per tonne. Packaged rice being exported will attract an export commission of US$8 per tonne as against the US$6 charged previously while US$5 will be the applied export commission per tonne of broken rice being exported as against the US$2 per tonne charged previously.
According to the minister, the existing rice commission was charged when the average export price for rice was about US$250 per tonne and pointed out that the average export price is now about US$650 per tonne.
He emphasized that the Guyana Rice Development Board (GRDB) garners its resources from the commission and the additional funds will be used to restructure and modernize the entity’s operations.
It will also be employed to improve the rice trade and capacity of the board to support the industry as well as to provide better extension services to farmers. Additionally, the funds will be used to assist in various interventions to cushion the effects of rising rice prices on local consumers.
Persaud assured that the increased export commission will have no effect on local paddy or rice prices and declared that this may further ensure that the local market is adequately served at an affordable price.
Meanwhile, the Agriculture Minister emphasized that while there is no ban on rice exports, a ban has been placed on the export of rice bran. “There is a total ban on that”, he declared stating that this was done to ensure adequate supplies for the livestock industry. Additionally, an export limit of 10,000 tonnes has been established for broken rice.
Persaud said that production will be going up for the first crop currently being harvested and also projected an increase for the rest of the year.
He asserted that there would be enough of the grain to supply the local market and to meet export requirements. He said that rice production will be over 321,000 tonnes for the year and both CARICOM and non-CARICOM markets will be supplied. He declared that the first crop currently being harvested “will be one of the biggest ever in Guyana’s history”. He said that there was no slow-down of exports but monitoring is ongoing. Persaud revealed that in the Essequibo region, 81% of the rice crop had been harvested, in Region Three over 50%, Region Four over 80%, Region Five about 20% and Region Six about 29-30%. He stated that the low harvesting percentage in Regions Five and Six is due in part to late cultivation of the fields.
Meantime, the minister said that the New Guyana Marketing Corporation rice “price-buster’ campaign will be expanded to other areas and also said that the ministry “believes that some amount of leakage is taking place” with regards to rice being smuggled.
